Silver Prices Surge to ₹1,01,522 per kg, Outperforming Gold and Equities in FY25

Team Finance Saathi

    28/Mar/2025

What's covered under the Article:

  1. Silver prices ended the week at ₹1,01,522 per kg, gaining 0.21% on MCX.

  2. Global silver prices rose nearly 1% to $35.42 per ounce, reflecting strong demand.

  3. Silver outperformed gold and equities in FY25, delivering a 35.56% return.

Silver prices in India closed the week higher, settling at ₹1,01,522 per kg on Friday, March 28, 2025. The metal gained ₹209 (0.21%) on the Multi Commodity Exchange (MCX) for May delivery, with a turnover of 22,870 lots. This marks another strong performance for silver, reinforcing its status as one of the best-performing assets of FY25.

Silver’s Strong Performance in FY25

Silver has delivered a stellar 35.56% return so far in FY25, significantly outperforming gold (+31.37%), Nifty (+5.29%), and Sensex (+4.96%). This remarkable rise in silver prices today is driven by strong industrial demand, geopolitical risks, inflation concerns, and currency fluctuations.

Volatility and Market Trends

Silver saw high volatility throughout the trading week. Prices touched a high of ₹1,05,100 per kg on March 20, but corrected midweek before witnessing renewed buying interest. Global silver prices also surged, with the metal trading nearly 1% higher at $35.42 per ounce in New York. The MCX silver price movement reflects ongoing bullish sentiment as traders capitalize on market fluctuations.

Factors Driving Silver’s Bullish Outlook

Several factors are contributing to silver's strong performance and price momentum:

  • Geopolitical Uncertainty: Ongoing global trade tensions and conflicts have boosted safe-haven demand for silver bullion.

  • Industrial Demand Growth: Silver's extensive use in electronics, solar panels, and EV batteries continues to drive demand.

  • US Fed Policy & Inflation: Federal Reserve policies, interest rate decisions, and inflationary pressures play a crucial role in silver price trends.

  • Global Market Influence: The international silver market is seeing increased demand from institutional investors amid economic uncertainties.

Comparing Silver with Other Investment Avenues

In the commodity market, silver has been a standout performer compared to other asset classes:

Asset Class

FY25 Returns

Silver

+35.56%

Gold

+31.37%

Nifty 50

+5.29%

Sensex

+4.96%

With silver outperforming gold and equities, many investors are considering it as a hedge against inflation and economic uncertainty.

Silver Price Forecast: What’s Next?

Silver price prediction for the coming months remains positive. Analysts believe that the US Federal Reserve’s policy decisions, currency movements, and industrial demand trends will be key factors determining silver’s trajectory.

Experts suggest that MCX silver trading activity will remain robust, with investors closely watching inflation data, Fed policy shifts, and global supply-demand dynamics. If industrial and investor demand remains strong, silver prices could test new highs in the coming months.

Key Takeaways for Investors

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